Communications company Daisy Group has entered into a conditional agreement to acquire the trading assets of Telinet Ltd and certain trading assets of Ipitomi Ltd for a cash consideration of up to £15.4m. Telinet Ltd and Ipitomi Ltd are both wholly owned subsidiaries of Niu Solutions Holding Ltd.
Data and managed service providers, Telinet and Ipotimi supply data solutions, telephone systems, unified communications, connectivity, Microsoft presence and collaboration solutions to mid-market customers.
The acquisition further bolsters Daisy’s existing presence in the mid-market space and enhances its data and engineering capabilities, with Avaya and Mitel trained engineers joining the Group’s UK wide engineering team.
In the eight month period ending 31 August 2010, the unaudited management accounts of Niu Solutions Holdings Ltd included revenues and gross profits of £15.8m and £4.6m in relation to the Telinet and Ipitomi assets being acquired.
The consideration will be satisfied by the payment of £12.4m cash at completion with £3m deferred for up to two years. The transaction is expected to be earnings enhancing for the financial year ending March 2012.
Matthew Riley, Chief Executive Officer of Daisy Group plc, said, “This deal will further strengthen Daisy’s position as a leading provider of unified communications to the mid-market. The acquired businesses are well-established and recognised as key competitors in the data solutions and managed services market.
“The acquisition further bolsters Daisy’s group-wide capabilities, strengthening our sales team and engineering force, while significantly enhancing both our data and managed services portfolio and customer base. Furthermore, we also see a great opportunity to cross sell Daisy Group’s mobile product set into this new base and provide these customers with a full, unified communications offering. In turn customers benefit hugely from being able to reduce their supply chains.
“This is further evidence of Daisy Group’s ambition to consolidate the fragmented reseller market and I believe we now have a very strong presence in the corporate mid-market space.”